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Novum Alpha Global Opportunity Digital Asset Fund | SP

Quantitative-Discretionary Long-Short Digital Asset Strategy


Investment Manager:     

Strategy

Novum Alpha Global Opportunity Digital Asset Fund manages a quantitative-discretionary long-short strategy that represents years of experience trading opaque digital asset markets while leveraging cutting edge quantitative models.



1,677%

Annualized Return

2.97

Sharpe Ratio

0.314

Beta



US$10,000

Invested


US$177,744

Returned

6.25

Alph

17X

RETURN ON INVESTMENT



Our Investment Process



Idea Generation


Using a mosaic approach, disparate data points are collated from public and private sources and supplied to in-house data science tools to identify opportunities. Research infrastructure scans blockchains, price data, order books, social media, and news.


Digital Asset Selection


Homing in on dislocations and inefficiencies, quantitative analysis identifies opportunities and sets up appropriate long and/or short entry points as well as caters for trade duration and sizing.


Risk Management


Portfolio monitoring systems manage portfolio risk 24/7 to prevent trade concentration and manage exposure.
Trades are automatically sized according to strength of conviction and trade frequency optimized to ensure minimal slippage.


Automated Execution


Automated, algorithmic trading programs trade multiple short to mid- term strategies 24/7 to capture digital asset price movements using rules-based, signal-generating logic, ensuring stable performance and low instrument correlation.

Portfolio Guidelines



Investable Universe Long short digital assets
Position Exposure Longs: 75% - 95%
Shorts: 15% - 35%
Number of Positions Rules-based and algorithmically managed according to market conditions
Opportunistic Takes advantage of dislocations, inefficiencies and special situations
Active Risk Management Derivatives: 60% - 80% of net exposure
Short selling: Individual digital assets and derivatives

Alpha Generation

6.25* alpha
0.314+ beta
  • Digital assets may be volatile, but that doesn’t mean your experience with them needs to be.
  • In-depth research and data analytics ensures performance above a general basket of digital assets to generate alpha.
  • Active hedging reduces beta relative to the often-volatile digital asset markets.

  • Alpha is a historical number of how the investment performed relative to the benchmark, in this case the Bloomberg Galaxy Crypto Index. A value of 6.25 in this case implies that the Novum Alpha Global Opportunity Digital Asset Fund would have performed 6.25 times better than an investment in the Bloomberg Galaxy Crypto Index.
  • Beta is an indication of the volatility of Novum Alpha Global Opportunity Digital Asset Fund relative to the digital asset market, taken here to be represented by the Bloomberg Galaxy Crypto Index. A beta of less than 1 implies a lower volatility than the market.

Portfolio Diversifier


The potential diversification benefits of adding

Novum Alpha Global Opportunity Digital Asset Fund to an existing portfolio include:


  • Negative correlation with equities, bonds and gold
  • Low correlation with Bitcoin and broad digital asset index indicating minimal digital asset

Novum Alpha Global
Opportunity Digital Asset Fund
Bloomberg Galaxy Crypto Index 0.67
Bitcoin Buy & Hold 0.32
S&P 500 -0.02
iShares Core U.S. Aggregate Bond ETF 0.05
Gold -0.07

Correlation is a statistical measure of how two assets move in relation to each other. A correlation of +1 implies that two assets move in unison, whereas a correlation of -1 implies that move exactly opposite to each other. A correlation of 0 means that the two assets move randomly in relation to each other. Please see the “Glossary of Terms” for more information.

Service Providers


Legal


Dentons (Cayman Islands)

Dentons Rodyk & Davidson LLP (Singapore)

Tax / Audit


Baker Tilly (Cayman Islands)

Administrator


Lanturn Pte. Ltd.

Custodian


Copper Technologies (UK) Limited

Fund Details & Investment Terms



Fund Details
Domicile: Cayman Islands
Subscription Currency: US$*
Denomination: US$
High Water Mark: YES
Minimum Investment: US$100,000
Investment Terms
Management Fee: 2.0%
Performance Fee: 30.0%
Lock-In: NONE
Short Term Trading Deduction (1st YEAR): 5%
Redemption Fee (after 1st YEAR): NONE

For the The Fact Sheet And Monthly Performance Report, Please Contact Us



Contact Us

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Important Risk Information



Carefully consider each Product’s investment objectives, risk factors, fees and expenses before investing. This and other information can be found in each Product’s private placement memorandum, which may be obtained from Grayscale and, for each Product registered with the SEC and/or listed on the OTC Markets, such Product’s annual report or information statement, which may be obtained by visiting the SEC’s website for Grayscale Bitcoin Trust (Symbol: GBTC) and Grayscale Ethereum Trust (Symbol: ETHE) or the OTC Markets website for Grayscale Bitcoin Cash Trust (Symbol: BCHG), Grayscale Ethereum Classic Trust (Symbol: ETCG), Grayscale Litecoin Trust (Symbol: LTCN) and Grayscale Digital Large Cap Fund (Symbol: GDLC). Reports on OTC Markets are not prepared in accordance with SEC requirements and may not contain all information that is useful for an informed investment decision. Read these documents carefully before investing.


Investments in the Products are speculative investments that involve high degrees of risk, including a partial or total loss of invested funds. Grayscale Products are not suitable for any investor that cannot afford loss of the entire investment. The shares of each Product are intended to reflect the price of the digital asset(s) held by such Product (based on digital asset(s) per share), less such Product’s expenses and other liabilities. Because each Product does not currently operate a redemption program, there can be no assurance that the value of such Product’s shares will reflect the value of the assets held by such Product, less such Product’s expenses and other liabilities, and the shares of such Product, if traded on any secondary market, may trade at a substantial premium over, or a substantial discount to, the value of the assets held by such Product, less such Product’s expenses and other liabilities, and such Product may be unable to meet its investment objective.


This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.


The shares of each Product are not registered under the Securities Act of 1933 (the “Securities Act”), the Securities Exchange Act of 1934 (except for Grayscale Bitcoin Trust and Grayscale Ethereum Trust), the Investment Company Act of 1940, or any state securities laws. The Products are offered in private placements pursuant to the exemption from registration provided by Rule 506(c) under Regulation D of the Securities Act and are only available to accredited investors. As a result, the shares of each Product are restricted and subject to significant limitations on resales and transfers. Potential investors in any Product should carefully consider the long-term nature of an investment in that Product prior to making an investment decision. The shares of certain Products are also publicly quoted on OTC Markets and shares that have become unrestricted in accordance with the rules and regulations of the SEC may be bought and sold throughout the day through any brokerage account.